There maybe any number of circumstances or reasons for which a resident Indian desires to gift a non resident Indian or a Person of Indian Origin . One of the most important reason for asking for loan , maybe , purchase of house or some urgent medical expense on behalf of relative of NRI etc . Since the matter relates to transactions in foreign exchange (ultimately) , one needs to consider the implication of law of FEMA which is regulated by RBI and taxation issues related to the receipt of gift . This post is going to clarify ,in question answer form , all issues related to gift by Indians to Non Resident Indians.

The author has spent twenty years with Income Tax department and desire to service common citizen of India which include professionals like tax practioners ,CA,ICMA, CS and tax lawyers by advising them on the direct tax matters for a very affordable fee.